The founder of Byju's claims that his edtech startup, once valued at $22 billion, is now worthless.

Byju Raveendran, the founder of the edtech group Byju’s, recently acknowledged that he has made significant mistakes. During a conference with various journalists, he admitted that he underestimated market timing, overvalued growth potential, and that his company, which at its peak was valued at $22 billion, is now practically in the “zero” category.

Raveendran explained that the aggressive expansion strategy, which included the acquisition of over two dozen startups, proved disastrous when funding sources began to dwindle in 2022. The company had plans to go public in early 2022, with several investment banks valuing Byju’s at figures that could reach up to $50 billion. However, several of its more than 100 investors urged him to rapidly expand to nearly 40 markets, which seemingly fueled his ambition.

Unfortunately, the situation changed dramatically after Russia's invasion of Ukraine, which caused a drop in global markets and led venture capital into a downward spiral. As a result, Raveendran noted that many of his investors became evasive, and the departure of three major backers—Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative—from the board last year made it impossible for the startup to secure additional funding.

In light of these circumstances, Byju’s has initiated insolvency proceedings. With the change of control in the company, Raveendran expressed his frustration: “It’s worth nothing. What valuation are you talking about? It’s worth zero.” Byju’s, which was once considered the most valuable startup in India, has received funding from major entities such as BlackRock, UBS, Lightspeed, QIA, Bond, Silver Lake, Sofina, Verlinvest, Tencent, the Canada Pension Plan Investment Board, General Atlantic, Tiger Global, Owl Ventures, and the World Bank’s IFC, accumulating over $5 billion in funds to date.

Despite the dire situation of the company, Raveendran holds a glimmer of hope for a potential recovery. “I have nothing to lose. I come from a small town. I invested everything I had in the startup.”